JPYUSD analysis 03.08.2020

The US dollar fluctuated in a narrow range tilted to the upside during the Asian session to witness its bounce for the second consecutive session from the lowest since March 12 against the Japanese yen after the developments and economic data that we followed about the Japanese economy and before the economic developments and data expected on Monday by the economy The American is the largest economy in the world.

At exactly 05:56 AM GMT, the US dollar pair rose against the Japanese yen by 0.06% to 105.86 levels compared to the opening levels at 105.80 after the pair achieved its highest level during the trading session at 106.43, while achieving the lowest at 105.72, knowing, That the pair started the trading session on a falling price gap after it concluded the trading week and last month at 105.83 levels.

We have followed about the Japanese economy, the second largest economy in Asia, the third largest economy in the world, and the third largest industrialized country globally, the disclosure of the seasonally adjusted initial reading of GDP, which showed the stability of the contraction at 0.6%, little changed from the previous reading for the first quarter of last year, outperforming expectations for a 0.7% contraction.

As for the seasonally adjusted preliminary annual reading of GDP measured by prices in Japan, it reflected the stability of growth at 0.9%, in line with expectations, little changed from the first quarter, and this came before the disclosure of the final reading of the manufacturing PMI by Markit for Japan, which showed contraction shrinking To 52.2 compared to the previous reading for the last month and expectations at 42.6 compared to 40.1 last June.

It is noteworthy that the rebound of the dollar-yen at the end of last week from the lowest in four and a half months came after Japanese Finance Minister Taro Aso described last Friday the yen's recent rise as "fast", which reflected the Japanese government's concern that the strong currency could add more pain To the Japanese economy, which depends extensively on exports, which are the backbone of the economy and which is already suffering from a recession.

On the other hand, the markets are looking to reveal the final reading of the manufacturing PMI by Markit for the United States, which may reflect the stability of growth at $ 51.3, little changed from the initial reading of last month and against a contraction at 49.8 in June, before we witness By the US economy, the construction spending index, which showed a 1.0% increase compared to a 2.1% decline last May, was released.

Up to disclosure by the largest industrial country in the world about the reading of the Institute of Industrial Supply index, which may show a widening of 53.6 compared to 52.6 in June, as the reading of the Institute of Industrial Supply measured in prices may clarify an expansion to the value of 52.3 compared to 51.3, and comes This is before the Fed revealed the results of the most responsible loan survey for the second quarter of this year.

Technical analysis

The dollar pair against the yen surged strongly up in the last sessions to breach the 105.20 level and touch the 106.44 level directly, noting that this level formed a strong resistance against the price, to start to rebound down from there, supported by the positive signal provided by the stochastic indicator, so we are likely to see more The decline during the upcoming sessions, awaiting the test of 105.20 initially.

From here, the bearish bias will be expected for today, and breaking 105.20 will push the price to 103.65 in the short term, while the expected decline will remain valid, provided the stability is below 106.44.

The expected trading range for today is between 104.90 support and 106.44 resistance.

Expected trend for today: bearish.